Appendix I ORDINARY COURSE CIRCUIT COMPARISON

• Jurisdiction: United States

Appendix I²¹⁴ORDINARY COURSE CIRCUIT COMPARISON²¹⁵

CIRCUIT	HOLDING	CASE	COMMENT
FIRST (Maine, Massachusetts, Rhode Island, New Hampshire)	To determine whether ordinary under subsection B, court examined the unusually large size of payments, unusual method of payment (wire transfer) and the fact that debtor's CFO interceded to make sure payment was made.	Brandt v. Repco Printers & Lithographers Inc. (In re Healthco International Inc.), 132 F.3d 104 (1st Cir. 1997).
SECOND (New York, Connecticut, Vermont)	Agreed with 7th Cir. Tolona Pizza approach. Focused upon determination of relevant industry under subsection C to determine "ordinary business terms." See also In re Rave Communications Inc., 128 B.R. 369 (S.D.N.Y. 1991) (allowing range of days if norm of industry). Late payments considered ordinary if customary between the parties and relevant industry.	Lawson v. Ford Motor Co. (In re Roblin Industries Inc.), 78 F.3d 30 (2d Cir. 1996); In re Vogel Van & Storage Inc., 210 B.R. 27 (N.D.N.Y. 1997), aff'd, 142 F.3d 571 (2d Cir. 1998).
THIRD (Delaware, New Jersey, Maryland, Pennsylvania)	Timing, amount and manner in which payment was made are relevant under § 547(c)(2)(B). Looks to creditor's industry under § 547(c)(2)(C). Length of relationship may allow deviation from industry standard.	U.S. Trustee v. First Jersey Sec. Inc. (In re First Jersey Sec. Inc.), 180 F.3d 504 (3d Cir. 1999); Hechinger Investment Co. of Delaware Inc. v. Universal Forest Products Inc. (In re Hechinger Investment Co. of Delaware Inc.), 489 F.3d 568 (3d Cir. 2007; Fiber Lite Corp. v. Molded Acoustical Products Inc.), 18 F.3d 217 (3d Cir. 1994).
FOURTH (Virginia, North Carolina, South Carolina, West Virginia)	Adopts 7th Cir. Tolona Pizza analysis as modified by 3d Cir. in Molded Acoustical: Subsection (C) establishes a requirement that a creditor prove the debtor made its pre-petition preferential transfers in harmony with the range of terms prevailing in relevant industries' norms. With a very long-term relationship, the creditor may be allowed to deviate considerably from the "industry standard."	Advo-System Inc. v. Maxway Corp., 37 F.3d 1044 (4th Cir. 1994); In re Johnson Bros. Truckers Inc., 9 F. App'x 156 (4th Cir. 2001).
FIFTH (Texas, Louisiana, Mississippi)	Adopts 7th Cir. Tolona Pizza analysis and adds that industry standard is a rough benchmark and creditor should also present evidence of other debtors and creditors in a similar market, preferably both geographic and product.	Gulf City Seafoods Inc. v. Ludwig Shrimp Co. Inc. (Matter of Gulf City Seafoods Inc.), 296 F.3d 363 (5th Cir. 2002); In re SGSM Acquisition Co. LLC, 439 F.3d 233 (5th Cir. 2006); Caillouet v. First Bank and Trust (In the Matter of Entringer Bakeries Inc.), 548 F.3d 344 (5th Cir. 2008); In re Moye, 486 F...